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Nigeria owes $4.85b to China, India & others

Nigeria owes $4.85b to China, India & others
Photo by Yu Kato- Ask Nigeria

The country’s external debt has risen by over 200% in the last seven years.

Recently, published data has shown that Nigeria owes about $4.85 billion to five countries. This debt was accrued in the last seven years during the administration of President Muhammadu Buhari. During this period, Nigeria’s external debt skyrocketed by over 200 percent. Most of this debt is owed to countries such as India, Japan, China, France and Germany. The Debt Management Office (DMO) have revealed in recent documents that the Federal Government borrowed about $3.27 billion from five countries between June 30, 2015, and September 30, 2022.

The DMO data on these loans showed that within the period, the government’s borrowings from five countries spiked by 206.96 percent from $1.58 billion in 2015 to $4.85 billion by September 2022. In mid-2015, Nigeria borrowed $1.39 billion from China Exim Bank, $140.25 million from France’s Agence Francaise Development, $43.10 million from Japan International Corporation Agency, and $11.73 million from Germany’s Kreditstanstalt Fur Wiederaufbua. The country’s bilateral debt stock increased with Nigeria’s owing China $4.09 billion.

China is Nigeria’s biggest bilateral creditor in decades.

In total, the new data revealed that Nigeria owes France $526.48 million, Japan $57.11 million, Germany $153.06 million, and India $27.17 million. The data shows that Nigeria got its first debt from India during the Buhari administration – a sum of $14.79 million from the Asian country. However, over the decades, China has remained Nigeria’s biggest bilateral creditor. The Nigerian government sought to borrow from the Chinese government to execute several projects such as standard gauge rail lines.

One of the documents that the DMO released showed that the Federal Government financed 15 projects with Chinese loans. Four of these projects are on rails. Nigeria’s current bilateral debt is put at 12.24 percent with a total external debt of $39.66 billion. This is excluding external debts owed by states. Nigeria’s debt has spiked from $10.32 billion on June 30, 2015 to $40.06 billion as of June 30, 2022. This covers external debts by both the Federal Government and states.

National Assembly to restructure N22.7trn debt.

The data showed that there has been an increase of 288.18 percent in seven years. As the Nigerian government struggles to service its bloating debt burden, the Senate President, Ahmed Lawan, has stated that the upper legislative chamber is willing to approve the N22.7 trillion request made by President Muhammadu Buhari in December 2022. It was on December 28, 2022 that the Senate rejected President Buhari’s request for the approval of N23.8 trillion CBN loans.

Lawan accused the Minister of Finance, Budget and National Planning, Zainab Ahmed, and Godwin Emefiele, the Governor of the Central Bank of Nigeria, of stalling the process by delaying the provision of the requisite documents with details of the ways and means to advance. The press reports that the lawmakers, led by Rivers West Senator Betty Apiafi, opposed the securitization of the CBN advances collected by the Nigerian government in the last ten years as well as the recently requested one-trillion-naira domestic loan.

Buhari signed the 2023 budget of N21.83 trillion into law.

Nigeria’s debt could rise to N77 trillion ($172 billion) from N44 trillion as of September 2022. The chief of DMO said that this would be after a loan-to-bond swap and new borrowings to fund the 2023 budget. President Muhammadu Buhari signed the 2023 budget of N21.83 trillion into law on January 3, 2023, and said the country would pay N1.8 trillion ($4 billion) in extra interest this year if parliament rejects the loan-to-bond swap request.


Related Link

Debt Management Office: Website

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Admin
1
8 days ago

Nigeria owes $4.85b to China, India & othersThe country’s external debt has risen by over 200% in the last seven years. – Express your point of view.

Member
9
8 days ago

It is very sad to hear Nigeria owes this huge amount of money to the countries and also international organisations without any tangible infrastructure to back it up and moreso no money in the country to pay back the loans and even no money to service the debt.

Member
9
8 days ago

Nigeria owes $4.85b to China, India & others. APC government has finish Nigeria. Imagine the huge amount of money Nigeria is owing and government salary should be reduce. They have failed us

Abusi
Member
8
8 days ago

Too much borrowing might impoverish our country as we are moving. It is too much at this rate. We should desist from borrowing and just make do with the little we have. We should also cut some Governmental expenses and cost of governance.

Member
8
8 days ago

The current government borrowed about $3.27 billion from five countries between June 30, 2015,September 30, 2022 and election in a month leaving no option for the next gov’t
The FG should do something regards it.

Member
8
8 days ago

According to the data, Nigeria received its first debt from India under the Buhari government, totaling $14.79 million. China has been Nigeria’s largest bilateral creditor over the years, nonetheless.

Member
8
8 days ago

The statistics that the DMO collected on these loans demonstrated that throughout this time period, the government’s borrowings from five other countries increased significantly.

Member
8
8 days ago

In order to carry out a number of projects, such as the construction of standard gauge rail lines, the government of Nigeria attempted to secure financing from the government of China.

Member
8
8 days ago

The fact that this debt was accumulated under President Muhammadu Buhari’s watch is evidence of how poorly his administration functioned.

Member
8
8 days ago

It’s absolutely mind-boggling to learn that one of the documents that the DMO shared revealed that the federal government supported 15 projects with loans from China.

Member
8
8 days ago

It’s unfortunate that the Nigerian government decided to securitize the CBN advances it has collected over the past ten years, in addition to the one trillion naira domestic loan it requested just lately.

Member
8
7 days ago

It is really upsetting to learn that Nigeria owes such a large amount of money to other nations as well as international organizations, especially given that there is no physical infrastructure to support this claim.

Member
8
7 days ago

It is possible that excessive borrowing would lead to the impoverishment of our country, and at present rate, it is already excessive.

Member
8
7 days ago

At this rate, it is excessive. Instead of borrowing money, we should learn to get by with what we already have. We should reduce certain government spending and the cost of running the country.

Member
8
7 days ago

This is not good of us this huge debt on the neck of our country owning other countries. We need to start reducing the debt my find a great source of revenue that will be bring I come for the country. Too much debt won’t allow country to progress much better

Member
9
7 days ago

Imagine the amount we have borrowed so far they have sold our dear country,we just need to stop borrowing and do something to help our economy

Member
8
7 days ago

It’s disheartening to learn that Nigeria owes so much money to other nations and international organizations without the means to repay the debts or even keep up with the interest payments.

Member
8
7 days ago

According to the available information, the Buhari administration oversaw Nigeria’s receipt of its first debt from India, which amounted to $14.79 million. Nevertheless, throughout the course of these many years, China has become Nigeria’s largest bilateral creditor.

Member
8
7 days ago

Our nation may become more impoverished if we borrowed too much, which we now are doing at an exorbitant rate.

Member
8
7 days ago

It is terrible that the Nigerian government chose to securitize the CBN advances it has accrued over the past 10 years in addition to the recent domestic loan request of one trillion naira.

Member
8
7 days ago

Let make the whole things clear. Any Administrations led by any President or head of state from the northern part of the country only lead us huge debt.That is an observation. The Obasanjo led administration ensures that the debts are completely cleared but we became heavily indebted when Buhari took over. It is well o.

Member
8
6 days ago

This Buhari-led administration just came into office to impoverished this country. Imagine, the country’s external debt has risen by over 200% in the last seven years under President Buhari administration and they are still planning to go for more loan to fund the country’s budget.

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